If property rights are not well enforced, which of the following is not likely to occur?
A)Fewer goods and services will be produced.
B)Economic efficiency will be reduced.
C)An economy will produce inside its production possibilities frontier.
D)A significant number of people will be willing to risk their funds by investing them in local businesses.

Question

Quizplus · Accepted Answer

When property rights are not well enforced, investors are less likely to risk their funds in local businesses due to the higher risk of theft, fraud, or expropriation. This lack of investment security discourages investment, contrary to the implication of choice D.

If Property Rights Are Not Well Enforced, Which of the Following